AKD Securities Limited – LUCK: 1HFY15 Result Review

Karachi, February 23, 2015 (PPI-OT): Lucky Cement Limited (LUCK) posted unconsolidated net earnings of PkR2.93bn (EPS: PkR9.07) in 2QFY15, registering a growth of 12%YoY against NPAT of PkR2.61bn (EPS: PkR8.09) in 2QFY14. The growth in bottom-line came on the back of 1) 7%YoY jump in revenues to PkR10.9bn (cement dispatches up 3.9%YoY) and 2) improvement in GMs by 210bps to 44.5% in 2QFY15 vs. 42.4% in 2QFY14. This took 1HFY15 earnings to PkR5.60bn (EPS: PkR17.32) vs. PkR5.16bn (EPS: PkR15.96) in 1HFY14, up by 9%YoY.

Other key takeaways from the notice issued to KSE include: 1) LUCK’s 5MW WHR plant at Karachi Plant is expected to come online by the end of Feb’15, 2) Vertical grinding mills are also expected to be operational by the end of this month and 3) LUCK’s joint venture Basra project posted net profit of US$6.4mn in 1HFY15.